Well there are always questions about an handheld game device from Microsoft. Well this isn't it. But what the XNA team did announce today is that XNA Game Studio 3.0 will support creating games for the Zune. And yes there will be multi-player games using the Zune's built in networking. Now that should be interesting. The announcement on the XNA blog is here. There is also a FAQ on the Creators Club web forum. Read the FAQ here. One thing of note is that your games will have access to non-DRM music on your Zune as well. That should make for some interesting mash up games.
But there is more. What about people being able to distribute or even sell their home grown games though Xbox LIVE Marketplace? Yep, that is coming as well. The announcement on the XNA blog is here with an FAQ here. Looks like some sample community games are available now and "will be playable for a very limited time." Get them while they are free people!
Personally I'm pretty psyched about the Zune games. I got a Zune for Christmas and some casual games to play on it interests me quite a bit. I like the idea of students having to learn how to deal with limited screens and limited memory as well. Nasty of me isn't it?